Reminder as to why we own Apple

This is William Fox, Cody’s Chief Technology Officer. As you all are aware, Cody got married last weekend and is currently enjoying his honeymoon. He therefore will not be posting anything this week. However, after Apple’s earnings report last night and subsequent drop in the stock price this morning, I’m going to re-post an article Cody wrote last September when the iPhone 5 was released to remind us why we are long term investors in the company. Its about the platform/eco-system they have built:

The iPhone 5. I wish they had called it theNew iPhone. What are we going to have, aniPhone 48 someday? It’ll be tough to continue convincing people to upgrade the higher the model number goes. They could have just kept calling each one the “new iPhone” like they did with the “new iPad” and that way you either have the latest or not. Better than trying to remember which number is the latest.

But whatever. The whole key to investing in Apple is, as I’ve been saying for almost a decade now, to recognize that you’re riding an entire platform/eco-system. The new iPhone, I mean the iPhone 5, along with the new iPods and iTunes that Apple released yesterday definitely build on that.

And the little things like more effective battery life and 4G capabilities are huge. The amount of Internet usage on the iPhone will continue to climb exponentially.

By the way, that usage is very profitable for the carriers who finally figured out that the All-You-Can-Eat model was a loser in a world where Internet bandwidth is the bottleneck now that the iMini-MacBookPro-for-your-pocket is a reality with the iPhone 5 being more functional and fun than an actual laptop. And that means that the carriers are going to be all the more aggressive about trying to get these iPhone 5s out the door.

And finally, probably the single biggest news from the iPhone event yesterday is that theiPhone 5 will be out and for sale in more than 100 countries and nearly 250 different carriers by December. That’s going to make the Apple platform a de facto standard for tens of millions more people this year than it would have otherwise. And those people will, like most of the rest of us who have already moved to the Apple platform over the years, stick with the Apple platform and start buying other Apple products and so on and so forth.

The virtuous cycle continues.